GROUND LEASE AGREEMENT FOR COUNTY-OWNED LAND LOCATED ON PHT

Board of County Commissioners · 2026-07-21 · resolution

The Board of County Commissioners adopted Resolution R-688-26, File Number 261263, approving the bifurcation of the Jackson Medical Towers Redevelopment Lease Agreement with RUDG, LLC for the second phase of development, for a term of 99 years, for workforce and affordable housing on County-owned land located on a portion of properties bearing Folio Nos. 01-3135-045-0010 and 01-3135-045-0020. The estimated cumulative rental revenue over the term is $534,923,191 to the Public Health Trust of Miami-Dade County, inclusive of a capitalized lease payment estimated to be approximately $41,331,973. The Phase 2 Lease is with Residences at Wagner Creek, LLC, an entity affiliated with RUDG, LLC. The project involves refurbishing the existing Jackson Medical Towers structures and converting them to a 358-unit residential building with approximately 676 parking spaces, instead of demolishing and constructing a new residential tower with 361 rental units. The residential unit income mix is modified so a minimum of 20 percent of units are workforce housing and a maximum of 30 percent are unrestricted. The planned 128-unit hotel tower is eliminated. The construction schedule is accelerated for completion from February 2032 to December 2029. A provision is added for a sublease for a vocational high school focused on health sciences. A provision gives the Public Health Trust an annual option to lease back a minimum of 20 percent of parking space capacity (estimated to be 135 parking spaces) at discounted rates for employee parking. The Phase 2 Lease requires a minimum of 50 percent of residential units be maintained as affordable housing units. The capitalized lease payment entails a lump sum payment of ten percent of the fair market value of existing improvements, due on financial close (estimated to be $4,133,197), and the balance due subject to a promissory note, to be paid after 33 years (estimated to be $37,198,776, plus interest). The initial rent payment of $135,000 is eliminated. The property is located in County Commission District 3. The resolution was introduced on 7/7/2026, the Housing Committee forwarded it to the BCC with a favorable recommendation on 7/14/2026, and the Board of County Commissioners adopted it on 7/21/2026. The document does not state any public comment or stakeholder sentiment.